Bitcoin briefly surpassed $56,000 on Tuesday, recovering from a significant dip caused by global market uncertainty that severely impacted major cryptocurrencies. The leading digital asset surged by up to 3.48%, partly rebounding from a sharp decline that had pushed its value below $50,000. Concurrently, Ether, the second-largest cryptocurrency, experienced its most significant drop since the collapse of FTX in 2022. As of 10:13 a.m. in Singapore, Bitcoin was priced at $55,770, and Ether stood at $2,509, reflecting an increase of nearly 3%.
Market participants remain wary, with many expressing concerns about the sustainability of the rebound until there is a broader improvement in the macroeconomic landscape and reduced geopolitical tensions, particularly in the Middle East.
“We are witnessing buying during the dips,” noted Sean McNulty, Director of Trading at Arbelos Markets. “However, overall sentiment remains cautious due to worries that this might signal the beginning of a more extensive deleveraging phase,” he added. Data from Coinglass revealed that liquidations in cryptocurrency bets reached approximately $1.1 billion on Monday, marking one of the highest levels since early March.
The recent plunge in Bitcoin’s value has erased over $150 billion in market capitalization within 36 hours, leading investors in U.S. exchange-traded funds tied to the cryptocurrency to withdraw around $423 million. Despite these challenges, some traders are optimistic about a rapid recovery. “Just nine days ago, the BTC community was among the most optimistic it has ever been,” commented Rich Rosenblum, Co-CEO and Co-Founder of GSR Markets. “Bitcoin could potentially rebound to over $70,000 as swiftly as it fell.”
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